Tesla Inc. will release a software update to about 1.2 million cars in China — around half the fleet it’s sold in the country — to fix issues with the vehicles’ power steering and rear-view cameras that may pose safety risks.The steering issue stems from a software problem that can cause the electronic power steering system to fail, the State Administration for Market Regulation said in a statement Friday. A potential malfunction of the cars’ rear-view cameras could meanwhile impair drivers’ fie...